The Synthetix stablecoin sUSD has depreciated below the peg of $1.00, dropping to $0.83 before a slight recovery. 📉 This is the second time this year that sUSD has encountered this issue, raising concerns about the issuer's stabilization mechanism.

- The main reason is due to supply exceeding demand, as traders have been panic-selling sUSD in large volumes, particularly on Curve, where sUSD constitutes 75% of the DAI-USDC-USDT-sUSD pool.

- The peg recovery mechanism is in a transitional phase, with expected volatility, according to Synthetix founder Kain Warwick.

Currently, sUSD is priced at $0.8593, down 7.2% in the last 24 hours and 10% over the past week. Warwick remains optimistic about the future of Synthetix. 🌟